Audit 383713

Section III - Federal Award Findings and Questioned Costs This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to major federal programs that are required to be reported in accordance with the Uniform Guidance. Finding 2025-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 22 students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2025. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 2 out of the 22 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 out of the 22 students selected for Enrollment Reporting testing, the status change effective date was not accurately reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not accurately reported to NSLDS within the required timeframe.. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls and communication protocols across departments to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding.